Market Drama
Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA
Welcome to this week’s Market Drama!
Stock Market Updates:
- S&P 500 was down 4% for the week.
- Nasdaq was down even more, 5.8% for the week.
- What happened? Chip stocks:
- Nvidia was down close to 14% for the week (a week after earnings were reported).
- Two-punch:
- High expectations and people returning to work in September, hammering the stock.
- There are rumors that the Department of Justice is doing a subpoena on Nvidia for a potential antitrust case (nothing has materialized).
- Broadcom plunged almost 11% after they reported earnings (below analyst expectations).
Economic Updates:
- New job numbers: 142,000 (below expectations of 165,000).
- 3-month average down to 116,000 (well below the average of the last three years of 334,000).
- Unemployment rate remains well below long-term historical averages of 5.7%, despite going up from 3.7% to now 4.2%.
- Gives room for the Fed to start easing before the overall employment picture goes from soft to a full-blown recession.
Next week:
- CPI Inflation numbers
- Consumer Sentiment data
Stay tuned for next week.
– Andres
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